In Uncategorized on 01/23/2020 at 21:36

Mr Charles here is not a symbol, as in the James Baldwin 1964 drama. Mr Charles is the proponent of a software program that Floyd X. Proctor, Docket No. 13072-18, filed 1/23/20, tried valiantly to use to complete his overdue tax returns.

Floyd admits his fault in delaying. But Floyd failed to input some 1099-MISCs he got for snowplowing. Floyd had a dump truck and an LLC. The truckin’ life he led was incidental to his main job.

Who better to let Floyd off the Section 6662 chops than that Obliging Jurist, Judge David Gustafson, in this designated hitter off-the-bencher?

“Mr. Proctor has a high school education. After he graduated in 1985, he worked at a Safeway grocery store. Since about 1987 he has worked as an explosive operator for the Department of Defense (‘DOD’) as a civilian employee.” Transcript, at p. 4.

Here’s the story. “Mr. Proctor was uncertain how to report hi trucking activity on his return. A friend referred him to  a supposedly knowledgeable man named Mr. Charles, who (Mr. Proctor believed) owned a truck and used it in an income-  producing activity similar to Mr. Proctor’s. Mr. Proctor obtained tax preparation software called “Tax Act”, and when he prepared his … returns, Mr. Charles came over to Mr. Proctor’s house and stood over his shoulder, helping him respond to the software prompts and fill in the information that was reported on Schedule C.

“When Mr. Proctor prepared his tax returns in this manner, he showed Mr. Charles the Forms 1099 that he had received and that he had issued to workers, as well as cancelled checks, invoices, and receipts for his trucking expenses. Mr. Proctor used the Forms 1099 that he had received from customers to tally and report income from his trucking activity. However, he did not realize that he had not received Forms 1099 from all of his trucking activity income (probably missing Forms 1099 for income from snow-plowing jobs in both years), so he under-reported his income on his returns. He reported trucking activity expenses on the returns that, he eventually agreed by stipulation, should be reduced; but we conclude the deductions he claimed were not deliberately faked.” Transcript, at p. 5.

Floyd testified forthrightly. Given his education and his good-faith efforts to do the right thing, even belatedly, Judge Gustafson lets Floyd off the penalties, but not the late-filing additions.





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